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What hampers Tractor Industry in South India ?

What hampers Tractor Industry in South India ?

28 June, 2019

 

India, in the field of Agriculture has been one of the world’s greatest producers, with highly efficient cropping and crop planning techniques India rules the Agricultural domain. However, a recent trend related to agriculture in India, that scares the economists worldwide is the decline of Tractor Industry in southern parts of India. Accounting to many reasons, Tractor Industry can be seen on the suffering part of the game and specifically in some parts of India. Whereas, the rest parts of the country continue experiencing great growth rates in the sale of tractors and other Farm Equipments.

This blog is a special coverage to account the reasons which can be held responsible for the decline and retardation in the sales of Tractor, specifically in South India.

Discontinuation of Subsidy

The factor that has hit the Tractor Industry majorly is the Discontinuation of Subsidy in the states of Southern India. Farmers who earlier used to avail the benefit of subsidies provided to them against a Loan and buying of Tractor and Farm Implements were discontinued, which further led to a decline in the sale of Tractors in the entire region.

This can be seen as a consequence of the poor political management and harsh climatic conditions in this region, which made it hard for public or private parties to offer such schemes.

Another reason that can be accounted for such a setback is the allocation of the funds for subsidies to other kinds of Farmer Loans and funds, which created a block of subsidies as the funds were used up.

Now this resulted in a major setback in the expectations of the farmers who planned their Cropping Pattern accordingly. This has not only impacted the lives of farmer but also the Tractor Industry to a very large extent. Due to sudden changes in the scheme plan, farmers left dumbstruck are now waiting for another sudden change which would induce subsidies back into the account and they would finally buy their dream machine.

This instability and not-so-fruitful expectations have delayed the process further along with declining the sales of tractors to an all time low.

In order to secure a positive outcome to this negative situation, a lot of planning along with administration support is required, which would first introduce lucrative schemes for the farmers and then bring the Tractor Industry to a level that it can be as competent as its counterpart in northern parts of the country.

Absence or lack of funds with the Dealers

Along with the vacuum of subsidies, another reason that has struck the Tractor Industry is the absence or lack of funds the dealers possessed. Such a condition can be seen as a consequence of other factors too, but has now been a major destruction to the set of Agricultural Values of Southern India.

Due to the lack of financial stability in the region, the dealers were left with a different kind of financial vacuum which supposedly made them face the risk of block in rotation of assets, which had hit the industry with a severe block of the funds.

 

Low Rainfall

As previously mentioned, harsh climatic conditions have been a bane to the entire Agriculture Industry. Similarly, Low Rainfall has been another reported cause for the decline of the tractor industry. Low Rainfall created it hard for the farmers to provide irrigation to their crops which resulted to a decrease in the overall cropped area, which had subsequently two reasons to result to the decline of industry.

First, the cost of irrigation increased which made farmers left with less funds for buying another product or say a liability in this case.

Second, with a decrease in the cropping area the use of tractor was minimized, since a low area could be ploughed and harvested with lower and less technical advanced equipments, this had hit the tractor industry hard.

Low Minimum Support Price

Southern India experiences comparatively low Minimum Support Prices for the crops as compared to the rest parts of the country; this might sound like a not-so-big reason for the decline of Tractor Industry, but when studied in addition to the above-mentioned reasons creates a huge impact upon a farmer.

Imagine a case where the overall cost of production has increased, no subsidies can be expected, the natural irrigation is low, the overall market is at the brink of collapse and a person then has to satisfy himself with a very low Minimum Support Price or in a more grieve condition cannot expect a fair price of the hard work and resources put in.

Political Instability

The nation during the Fiscal Year 18-19 observed an overall instability in the Political strata. With the election season going on and the related ongoing campaigns, the funds were concentrated to an entirely different domain which created a vacuum of funds in many regions. This is not the reason for decline of Tractor Industry alone, but of many industry that suffered a huge loss during this span. This reason is till unheard for the fact that it is hidden and major analysts refrain from talking about it or mentioning it. However, after the formation of the stable govt. this point is expected to be ratified.

Conclusion:

Farming has been impacted with the decline of Tractor Industry in the Southern India; this is how the decline is not just a nightmare for an industry but the entire nation.

Prosperity of Farmer is directly related to the Mechanisation of his farm fields and when the process of mechanization slows down, the entire cropping pattern faces a huge impact.

Tractorjunction.com brings to you the latest development in the field of Agriculture and makes it easy for you keep a check on the up gradation to get the best out of the least. Information about Loan, new Tractors, Farm Implements and other Agriculture related queries can be seen addressed at tractorjunction.com, aiding the farmer and bringing out great changes in the field of Indian Agriculture.

  

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महिंद्रा ने बेचे 24 हजार ट्रैक्टर, घरेलू बाजार में मिली बढ़त

महिंद्रा ने बेचे 24 हजार ट्रैक्टर, घरेलू बाजार में मिली बढ़त

मई माह की बिक्री में पिछले साल के मुकाबले 2 फीसदी का इजाफा 20.7 बिलियर अमेरिकी डॉलर के महिंद्रा गु्रप (महिंद्रा एंड महिंद्रा) के फार्म इक्विपमेंट सेक्टर ने मई 2020 में ट्रैक्टरों की बिक्री के आंकड़े जारी किए। महिंद्रा ने अपनी ब्रांड वैल्यू को बरकरार रखते हुए मई माह में 24,017 ट्रैक्टर बेचे हैं जो कि पिछले साल के मुकाबले 2 फीसदी ज्यादा है। कंपनी ने मई 2019 के दौरान 23,539 इकइयां बेची थी। मई 2020 के दौरान कुल ट्रैक्टर बिक्री (घरेलू+निर्यात) 24,314 इकाई थी, जबकि पिछले साल की समान अवधि में कंपनी ने 24 हजार 704 इकाइयां बेची थी। हालांकि कंपनी के निर्यात में 72.18 फीसदी की कमी दर्ज की गई है। कंपनी ने मई 2020 में 324 ट्रैक्टरों का निर्यात किया है जबकि मई 2019 में 1,165 ट्रैक्टर बेचे थे। मई 2020 में महिंद्रा कंपनी के बिक्री आंकड़े महिंद्रा ट्रैक्टरों की बिक्री मई 20 मई 19 बिक्री में परिवर्तन (%) घरेलू बाजार 24,017 23,539 + 2 निर्यात 324 1,165 -72.18 कुल 24,341 24,707 -1.48 कंपनी के प्रदर्शन पर टिप्पणी करते हुए महिंद्रा एंड महिंद्रा के फार्म इक्विपमेंट सेक्टर के अध्यक्ष हेमंत सिक्का ने कहा कि हमने मई 2020 के दौरान घरेलू बाजार में 24,017 ट्रैक्टर बेचे हैं। जो पिछले साल की तुलना में 2 प्रतिशत की वृद्धि का प्रतिनिधित्व करते हैं। उन्होंने कहा कि लॉकडाउन के दौरान कृषि संबंधी क्षेत्र को सरकार से मिली छूट का फायदा हुआ है। इससे ट्रैक्टरों की मांग में तेजी बनी हुई और कंपनी ने कोविड-19 के संक्रमण काल में भी पिछले साल जैसे ही बिक्री की। आगामी समय में मजबूत रबी फसल उत्पादन, उच्च खरीद, अच्छी कीमत की प्राप्ति और एक सामान्य मानसून के पूर्वानुमान सहित कई विकासों के कारण किसान की धारणा सकारात्मक रहने की संभावना है जो खरीफ फसल सीजन के लिए अच्छा संकेत है। इन सभी कारणों से भविष्य में ट्रैक्टरों की मांग और बढ़ेगी। सभी कंपनियों के ट्रैक्टरों के मॉडल, पुराने ट्रैक्टरों की री-सेल, ट्रैक्टर खरीदने के लिए लोन, कृषि के आधुनिक उपकरण एवं सरकारी योजनाओं के नवीनतम अपडेट के लिए ट्रैक्टर जंक्शन वेबसाइट से जुड़े और जागरूक किसान बने रहें।

ट्रैक्टरों की बिक्री ने पकड़ी रफ्तार, एस्कॉर्ट्स ने मई में बेचे 6454 ट्रैक्टर

ट्रैक्टरों की बिक्री ने पकड़ी रफ्तार, एस्कॉर्ट्स ने मई में बेचे 6454 ट्रैक्टर

देश के बाजारों में घटने लगा कोविड-19 का असर, बिक्री में मात्र 0.5 प्रतिशत की गिरावट कोविड-19 का असर देश के बाजारों में धीरे-धीरे कम हो रहा है, अर्थव्यवस्था रफ्तार पकड़ रही है। मई माह की बिक्री के आंकड़ों से ट्रैक्टर कंपनियों को राहत मिली है। देश के घरेलू बाजार में ट्रैक्टरों की बिक्री ने पिछले साल 2019 की तरह रफ्तार पकड़ ली है। एस्कॉर्ट्स ने घरेलू बाजार में मई 2020 में 6454 इकाइयों की बिक्री की है। जबकि मई 2019 में कंपनी ने 6488 इकाइयों की बिक्री की थी। कोविड-19 संक्रमण काल के कारण कंपनी की बिक्री में मात्र 0.5 प्रतिशत की गिरावट दर्ज की गई है। एस्कॉर्ट्स लिमिटेड की घरेलू व निर्यात बाजार में मई माह में ट्रैक्टरों की बिक्री में 3.4 प्रतिशत की गिरावट दर्ज की गई है। कंपनी ने पिछले साल इसी महीने में कुल 6827 इकाइयां बेची थीं, एस्कॉर्ट्स ने लिमिटेड ने यह जानकारी एक नियामक फाइलिंग में दी है। एस्कॉर्ट्स के मई 2020 में बिक्री आंकड़े एस्कॉर्ट्स ट्रैक्टर की बिक्री मई 2020 मई 2019 बिक्री में परिवर्तन (%) घरेलू बाजार 6454 6488 -0.5 निर्यात बाजार 140 339 -58.7 कुल 6494 6827 -3.4 कंपनी के अनुसार, पिछले महीने घरेलू ट्रैक्टर की बिक्री 6454 इकाई थी, जो मई 2019 में 6488 इकाइयों की तुलना में 0.5 प्रतिशत की गिरावट थी। कंपनी ने कहा कि पिछले साल इसी महीने में 339 के मुकाबले एक्सपोर्ट्स 140 यूनिट्स पर रहा था। पहली तिमाही के पहले दो महीनों में, कंपनी ने घरेलू बाजार में 7067 ट्रैक्टर बेचे, जो एक साल पहले की समान अवधि की 11474 इकाइयों की तुलना में 38.4 प्रतिशत कम है। समीक्षाधीन तिमाही के दौरान कुल ट्रैक्टर बिक्री (घरेलू + निर्यात) 7299 इकाइयों में 39.6 प्रतिशत घट गई। सभी कंपनियों के ट्रैक्टरों के मॉडल, पुराने ट्रैक्टरों की री-सेल, ट्रैक्टर खरीदने के लिए लोन, कृषि के आधुनिक उपकरण एवं सरकारी योजनाओं के नवीनतम अपडेट के लिए ट्रैक्टर जंक्शन वेबसाइट से जुड़े और जागरूक किसान बने रहें।

Mahindra Tractor Sells 24,017 Units in India during May 2020; 2% Growth in Domestic Market

Mahindra Tractor Sells 24,017 Units in India during May 2020; 2% Growth in Domestic Market

Mahindra & Mahindra Ltd.'s Farm Equipment Sector), a part of the USD 20.7 billion Mahindra Group, today announced its tractor sales numbers for May 2020. Domestic sales in May 2020 were at 24,017 units, as against 23,539 units during May 2019. Which is 2% higher than the May'19. Total tractor sales (Domestic + Exports) during May 2020 were at 24,341 units, as against 24,704 units for the same period last year. Exports for the month stood at 324 units. Which is 72% lower than the May'19. Mahindra sales result in May 2020: Mahindra Tractor Sales May'20 May'19 %Change Domestic 24,017 23,539 +2% Export 324 1,165 -72.18% Total 24,341 24,707 -1.48% Commenting on the performance, Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra Ltd. said, "We have sold 24,017 tractors in the domestic market during May 2020, representing a growth of 2% over last year. The timely relaxation of the lockdown for the Agricultural sector helped ensure the speedy recovery of tractor demand during May. In the near term, farmer sentiment is likely to remain positive due to several developments including robust Rabi crop production, higher procurement, good price realizations and the forecast of a normal monsoon that bodes well for a good Kharif crop. All these augur well for tractor demand going forward. In the exports market, we have sold 324 tractors".

Escorts domestic tractor sales bounce back in May 2020 only 0.5 % drop

Escorts domestic tractor sales bounce back in May 2020 only 0.5 % drop

Domestic tractor sales for the company in May were at 6454 units, compared to 6488 units in May 2019, a drop of 0.5%. Escorts Ltd on Monday reported 3.4 percent decline in tractor sales at 6594 units in May. The company had sold a total of 6827 units in the same month last year, Escorts Ltd said in a regulatory filing. Escorts sales result in May 2020: Escorts Tractor Sales May'20 May'19 %Change Domeestic 6454 6488 -0.5% Export 140 339 -58.7% Total 6594 6827 -3.4% Domestic tractor sales last month were at 6454 units, compared to 6488 units in May 2019, a drop of 0.5 percent, it said. Exports stood at 140 units as compared to 339 in the same month last year, witnessing a decline of 58.7 percent, the company said. In the first two months of the first quarter, the company sold 7067 tractors in the domestic market, down 38.4 percent compared to 11474 units the same period a year ago. Overall tractor sales (domestic+export) dipped by 39.6 percent at 7299 units during the quarter under review.

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